The long-awaited redevelopment of San Diego’s iconic Sports Arena is gaining momentum as the development team has released new artistic renderings of the Midway’s entertainment district.
The City has also released its draft environmental impact report (EIR) for the project, officially kicking off the project’s review and approval process, which is one of the final major milestones before developer Midway Rising can begin construction.
Midway Rising comprises affordable housing developer Chelsea Investment Corp., sports venue developer and operator Legends, market-rate housing developer Zephyr, and real estate investment partner The Kroenke Group.
“Midway Rising will soon transform an aging, underutilized property into a thriving new entertainment district with shops, dining, a new arena, new homes, and an urban park,” said Brad Termini, CEO of Zephyr.
“This vision is finally within reach, and we’re excited to bring it to reality for all San Diegans to enjoy.”
The Midway Rising project is a proposed mixed-use redevelopment of the 48.5-acre San Diego Sports Arena property located at 3500 Sports Arena Blvd. Plans for the site include a 16,000-seat entertainment center, 130,000 square feet of shops and restaurants, 14.5 acres of parks and open spaces, 2,000 affordable housing units, and 2,250 market-rate apartment homes.
San Diego Community Newspaper Group (SDCNG) caught up with Midway Rising for a Q&A to get more details on the project.
SDCNG: Now that the EIR for the project is complete and out for review, what are the next steps in the process?
MIDWAY: After the 45-day public review period concludes, our team will support the City as the Lead Agency in responding to all comments received on the Draft EIR.
Following this, our team will bring forward a negotiated long-term lease agreement and the Final EIR to the City Council for formal consideration in late 2025.
SDCNG: Do you have a timeline yet for project completion?
MIDWAY: Our team will work expeditiously with the City following the environmental review process and approval of a long-term ground lease by the City Council to secure all necessary grading and construction permits in 2026.
We currently estimate a 10-year construction timeline, with the project being built in multiple phases.
SDCNG: What are the financial hurdles that need to be cleared yet for the long-term redevelopment project?
MIDWAY: The Midway Rising team is proud to have the support of Stan Kroenke and The Kroenke Group as the team’s lead real estate investment partner in this transformational project.
Midway Rising will employ multiple financing strategies for various components of the project, such as federal, state, and local affordable housing funds, tax credits, private debt financing, and the formation of an Enhanced Infrastructure Financing District (EIFD).
This is an innovative financing tool that captures future property tax dollar growth generated by the private development to build new public infrastructure.
SDCNG: What about the phasing of the project?
What gets done first: constructing the new arena or the new housing component? Or will they be done concurrently?
MIDWAY: In the first phase of construction, our team will build a modern, 16,000-seat entertainment center on the easternmost portion of the site, during which time the existing arena will remain open and operational to allow for continued sports and entertainment events and resulting revenues for the City.
Additionally, both affordable and market-rate homes will be built during the first phase of construction and will follow in each subsequent construction phase of the project.
SDCNG: What are the major environmental issues in the project EIR that need to be addressed or mitigated?
MIDWAY: Midway Rising has undergone a multi-year process to study the environmental impacts of the project while also maintaining consistency with the community’s vision put forward in the Midway Community Plan.
Like many other large-scale projects, there are unmitigated impacts in a few distinct areas, and we will make the case to the City Council that a Statement of Overriding Considerations is necessary as the regional economic benefits and our team’s commitment to building 2,000 affordable homes—making Midway Rising the largest affordable housing project in California state history—outweigh these impacts.
SDCNG: What has changed about the project since it was first conceived?
MIDWAY: Midway Rising is proud to be the largest affordable housing project in California state history.
We remain committed to delivering a world-class, 16,000-seat entertainment center along with more than 4,000 homes, including 2,000 affordable homes for working families, new parks and open space, and a vibrant entertainment district with shops, restaurants, and more.
As is common with transformational projects like this one, site due diligence revealed a pre-existing site condition—an immovable 96-inch sewer line—that has reshaped aspects of our original proposal, specifically a planned 200-room hotel.
Additionally, plans for 250 middle-income homes were eliminated due to substantial changes to financial market conditions since our proposal was first submitted in late 2021.
SDCNG: Tell us more about the commercial component of the project.
What kind of businesses are you expecting to be involved?
MIDWAY: Midway Rising’s 130,000-square-foot entertainment district will feature restaurants, lifestyle and entertainment-focused stores and retailers, as well as spaces to meet the daily needs of residents.
SDCNG: How much of the housing will be affordable?
How will those tenants be chosen?
Will there be a waiting list?
MIDWAY: Midway Rising is committed to building 2,000 affordable homes, which makes Midway Rising the largest affordable housing project in California state history.
Our team’s affordable housing developer, Chelsea Investment Corporation, will make affordable units available to income-qualified households in compliance with fair housing law and subject to any applicable regulations.
These include waiting lists and may include a lottery, depending on the financing sources.
image source from：https://sdnews.com/360801-2/
